[SINGAPORE] Stock brokerages need to transform as they grapple with changes across the financial sector, said PhillipCapital founder and executive chairman Lim Hua Min.
Lim noted that brokerages, banks and other financial services are converging, blurring the lines that have marked out these operations and creating new opportunities in the process.
Remisiers, for example, could move between different financial activities and diversify into other areas to work as personalised fund managers.
“I see the increasing convergence of services,” said Lim, who has certainly seen his fair share of changes in the stockbroking industry as well as market crises like the collapse of Pan-Electric Industries, a marine salvage, hotel and property conglomerate.
The Pan-Electric saga prompted the then Stock Exchange of Singapore to close for the first time ever for three days in December 1985.
“Brokerages will always be around, but stockbrokers might not. Banking will always be around, but banks might not. Insurance will always be around, but insurance companies might not,” he said, adding that a financial group can now provide all these services under one roof.
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Lim was speaking at an event at Fullerton Hotel on Apr 23 to mark PhillipCapital’s 50th anniversary.
His son Luke, who is managing director of Phillip Securities, said that the firm now has more remisiers who are cross-trained in wealth management.
An individual can be both a remisier and a financial adviser if he has the necessary qualifications and licences.
Remisiers need a representative licence to operate, while financial advisers are regulated under the Financial Advisers Act. PhillipCapital has 600 remisiers and 700 financial advisers.
A remisier is a self-employed trading representative who provides advice on stocks, and buys and sells shares on behalf of clients, while financial advisers help individuals to plan for financial goals like buying a house or saving for retirement.
Fellow stock brokerage CGS International Securities Singapore said the “convergence of services of a remisier towards a wealth manager” is a good starting point.
CGS International chief executive Malcolm Koo noted that many remisiers have more than 20 years of experience in the financial markets and the fact that they are still around shows how well they have managed risks and navigated changes. Many have also forged trusted relationships with their clients over the years, creating a “matured pool of remisiers who have valuable financial knowledge and experience” that they can share with investors, Koo said.
This industry convergence is happening as technology reshapes the way people invest.
Luke Lim noted the new wave of retail investors who are digitally savvy and want to make their own investment decisions. They want real-time data and want to execute trades, analyse trends and get expert advice all in one ecosystem.
PhillipCapital was the first to launch an online trading platform, Poems, in 1996 to cater to this group of self-directed investors.
Lim said: “We moved from a traditional broker to a hybrid approach that combines digital convenience with human insight.”
Remisiers at Maybank Securities Singapore serve as “informed touchpoints” to help clients interpret market movements or navigate the trading platform, said Alexander Thorhauge, the brokerage’s head of retail business.
Thorhauge added that remisiers can tap Maybank’s research database to glean insights on macroeconomic developments or on specific sectors to provide client advice.
While there will always be some folk who prefer to invest on their own, there will be others who prefer to talk to someone, especially during periods when the markets are volatile, he noted.
Ernest Lim, a remisier at CGS International, adds value to his clients by providing regular market updates and timely alerts whenever a stock is downgraded or upgraded.
He has one-on-one meetings with a listed company’s senior management so he can understand each firm better and provide clients with information about its shares. Lim also makes site visits to a firm’s overseas plants to get a better on-the-ground feel of the company.
He has extended exclusive access to management meetings to clients so they can find out more about the company on their own.
Lim noted that active traders appreciate the trust, consistency and added perspective that remisiers can provide.
Fellow remisier Lek Yew Meng from Lim and Tan Securities said most of his clients are busy professionals or retirees who trade only in the Singapore market. These investors value timely, bite-sized market updates and corporate-related announcements.
He has conducted small group sessions on various topics to help clients understand market trends and explore products on the Singapore Exchange (SGX) and to familiarise them with the stocks that he thinks are worth adding to their watch list.
“It is about maintaining consistent communication, investor education and personal attention,” Lek said.
The Remisier Development Programme, launched in September 2024, helps remisiers pick up new skills such as digital marketing, or learn advanced trading strategies to better manage client portfolios.
The programme is a joint initiative by the Securities Association of Singapore and the Society of Remisiers, with support from the SGX. THE STRAITS TIMES
